Greetings …!!

from

Dr. L. ESWARAN

Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009

 CMA - FOUNDATION
PAPER - 4

FUNDAMENTALS OF BUSINESS
MATHEMATICS AND STATISTICS

Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009

 RATIO
Meaning:

Ratio is the mathematical expression of the relationship

between two numbers or quantities of the same kind
with regard to their magnitude.

Example:

In a business, salesman A earned incentive of ₹.10,000

and salesman B earned incentive of ₹.20,000.

We can compare that Salesman B earns double that of

Salesman A.

i.e. Ratio is 10,000 / 20,000 = ½ or 1 : 2.

Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009
 RATIO - DEFINITION

• “The relationship or proportion that one amount

bears to another, the first number being numerator
and the latter denominator”.

• Note:
1) If A and B are two similar quantities in a ratio of
A:B the ‘A’ and ‘B’ are called the terms of ratio.

2) In which ‘A is called the first term – antecedent

and ‘B’ is called second term – consequent.

Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009

 RATIO - PROPERTIES
1) The ratio is not changed by multiplying or dividing the
antecedent and consequent by the same number.

Eg. a) 3:4 multiplied by 2, 6:8

b) 20:12 divided by 4, 5:3

2) Two or more ratios can be compared by changing them to the

same denominator.

Eg. a) in the ratios 2:5 and 4:15 which is greater?

2/5 and 4/15 6/15 and 4/15 Greater one is 2/5

3) If a=b then the ratio a:b is called equal ratio. (Eg. 1:1)

4) If a>b then the ratio a:b is called greater inequality. (Eg. 4:3)

5) If a<b then the ratio a:b is called lesser inequality. (Eg. 3:4)
Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009
 KINDS OF RATIOS

• INVERSE RATIO
• EQUIVALENT RATIO
• COMPOUNDED RATIO
Duplicate Ratio

Sub-Duplicate Ratio

Triplicate Ratio

Sub-Triplicate Ratio

Continued Ratio

Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009

 INVERSE RATIO
•  
• A inverse of ratio is the reciprocal of the given ratio.

Example: Inverse or Reciprocal of x is , like that

• Inverse Ratio of x:y is y:x i.e. Inverse of is

• The product of the ratio and their inverse ratio
is equal to 1

x:y and y:x are inverse to one another, their

product will be x = 1

Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009

 EQUIVALENT RATIO
• When A and B are relative magnitudes of two quantities,
A:B is a ratio,

C and D are the another relative quantities, then

A:B = AC:BC = ACD:BCD

Example:

2 and 3 are relative magnitudes of two quantities, 2:3 is a

ratio.

4 and 5 are the another relative quantities, then

2:3 = 2x4 : 3x4 = 2x4x5 : 3x4x5 i.e. 2:3 = 8:12 = 40:60

Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009

 TYPES OF COMPOUNDED RATIO
•  
DUPLICATE RATIO

• When a ratio is compounded itself the resulting

ratio is called duplicate ratio.

• Example: The duplicate ratio of x : y = x2 : y2

SUB-DUPLICATE RATIO

• A ratio obtained by taking the square root of the

terms of the given ratio is called the sub-duplicate
ratio.

• Example: The sub-duplicate ratio of x:y is :

Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009
 TYPES OF COMPOUNDED RATIO
•  
TRIPLICATE RATIO

• When a ratio is compounded with itself three times,

then the resulting ratio is called triplicate ratio

• Example: The duplicate ratio of x : y = x3 : y3

SUB-TRIPLICATE RATIO

• A ratio obtained by taking the cube root of the

terms of the given ratio is called the sub-triplicate
ratio.

• Example: The sub-duplicate ratio of x:y is

Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009
 CONTINUED RATIO

• The continued ratio is the relation between the

magnitudes of two or more ratios and is denoted by
a:b:c.

Example: The continued ratio of a:b and b:c is a:b:c

i.e. ab:bb:bc = a:b:c

The continued ratio of 2:3 and 4:10 is

2x4:3x4:3x10

• 8:12:30; 4:6:15

Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009

 POINTS TO BE REMEMBER
•Reduce
 
the quantities to same units

Example: The ratio of 15kg : 600g can be written as

(15 x 1000)g : 600g = 15,000g : 600g = 150 : 6 = 25 : 1

When the quantity is increased by given ratio multiply

the quantity by greater ratio.

Example: To increase a quantity in the ratio of b:a, multiply

the quantity by the fraction b/a (b must be bigger number)

Increase 8 in the ratio 5:4 is,

8 x = 40 /4 = 10

Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009

 POINTS TO BE REMEMBER
•  
When the quantity is decreased by given ratio
multiply the quantity by lesser ratio.

Example: To decrease a quantity in the ratio of b:a,

multiply the quantity by the fraction a/b (b must be
bigger number)

Decrease 8 in the ratio 5:4 is,

8 x = 32 /5 = 6.4

Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009

 POINTS TO BE REMEMBER
•  
When both increasing and decreasing of quantities
are present in a problem multiply the quantity by
greater ratio in increase and multiply the result by
lesser ratio to obtain the final result

Example:

Increase 8 in the ratio 5:4 and Decrease 8 in the ratio

3:4 is,

8 x = 40 /4 = 10

10 x = 30 /4 = 7.5
Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009
 PRACTICE PROBLEM

QUESTION:

1) The ratio of the present age of a father to that of

his son is 4:1. Fifteen years hence the ratio would be
11:5. Find their present ages.

Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009

 PRACTICE PROBLEM
•  
SOLUTION:
Person Present Age Age after 15 years
Father 4x 4x + 15

Son 1x 1x + 15

Ratio 4:1 11:5

=; 5(4x+15) = 11(x+15); 20x+75 = 11x+165

20x–11x = 165-75: 9x = 90; x = 10
Father’s Present Age = 4x10 = 40 years
Son’s Present Age = 1x10 = 10 years.
Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009
 PRACTICE PROBLEM

QUESTION:

2) The monthly salaries of two persons are in the

ratio of 3:5. If each receives an increase of ₹. 20 in
salary, the ratio is altered to 13:21. Find the
respective salaries.

Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009

 PRACTICE PROBLEM
•  
SOLUTION 2) continues…

480 / 2 = 240

y = 5 x 240 / 3 = 400

The salaries of the two persons are ₹.240 and ₹.400

Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009

 PRACTICE PROBLEM
•  
SOLUTION:

2) Let the monthly salaries of the two persons be ₹.x

and ₹.y.

=; 5x = 3y; y = ----------- (1)

=; 21(x + 20) = 13(y + 20);

21x – 13y = -160-------------------------(2)

Substitute y = in equation (2)

Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009

 PRACTICE PROBLEM

QUESTION:

3) Monthly incomes of two persons Ram and Rahim

are in the ratio 5:7 and their monthly expenditures
are in the ratio 7:11. If each of them saves ₹. 60 per
month. Find their monthly income.

Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009

 PRACTICE PROBLEM
•  
SOLUTION: Hint:

Entire Income spent for Expenses and Savings.

Income – Savings = Expense.

Let the monthly incomes be 5x and 7x, then

= ; 11(5x-60) = 7(7x-60); 55x-49x= -420+660

6x = 240; x = 40

The monthly income of Ram = 5x40 = ₹.200

The monthly income of Rahim = 7x40 = ₹.280

Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009

 PRACTICE PROBLEM

QUESTION:

4) There has been increment in the wages of

labourers in a factory in the ratio of 22:25, but there
has also been a reduction in the number of labourers
in the ratio of 15:11. Find out in what ratio the total
wage bill of the factory would be increased or
decreased?

Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009

 PRACTICE PROBLEM

SOLUTION:

Details Old : New

Wages of Labourers (a) 22 : 25

No. of Workers (b) 15 : 11

Total Wages (a x b) 330 : 275

By Simplifying the total wages, the ratio is 6:5

Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009

 PRACTICE PROBLEM

QUESTION:

5) A Health Food Company decides to increase the

size of their Energy Bar in the ratio 6:5. If the old
bars has a weight of 80grams, what will be the weight
of the new bar?

Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009

 PRACTICE PROBLEM

SOLUTION:

New ratio of Energy Bar is 6:5 or 6/5

Weight of the old bar is 80 grams.

When the quantity is increased by given ratio

multiply the quantity by greater ratio

80 x 6/5 = 480 / 5 = 96 grams.

The weight of the new bar is 96 grams.

Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009

 PRACTICE PROBLEM

QUESTION:

6) In a disastrous year of Global Financial problems,

the value of Angelina’s Retirement Investment
Savings decreases in the Ratio of 5:7. If her savings
were worth ₹.50,000 a year ago, what is her current
money value?

Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009

 PRACTICE PROBLEM

SOLUTION:

A year ago her savings is ₹.50,000

Her retirement Investment Savings decreases in 5:7

When the quantity is decreased by given ratio

multiply the quantity by lesser ratio.

50,000 x 5/7 = 2,50,000 / 7 = ₹.35,714.29

Angelina’s current money value is ₹.35,714.29

Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009

 PRACTICE PROBLEM

Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009

 PRACTICE PROBLEM

Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009

 Stay at Home – Protect yourself and save your family members

Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009